Lorillard Inc. (NYSE: LO) was pummeled by put players on Monday, after the cigarette sultan reported an unexpected drop in third-quarter profit. During the course of the session, the equity saw about 3,900 puts cross the tape – almost doubling the number of LO calls traded, and more than five times the stock's average single-session volume of fewer than 800 puts.

The security's deep-out-of-the-money January 2010 60 put garnered the most attention, with 3,300 contracts exchanged. Meanwhile, the stock's November 75 put saw 1,275 contracts traded on open interest of fewer than 1,000, suggesting at least some of the activity consisted of fresh initiations.

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